VAT
Secondary self-employment: should you invoice with VAT?
Do you have a job and do side work at the same time? As a secondary self-employed person, you have the same tax obligations as a primary self-employed person, including VAT. Here's what you need to know.
Secondary self-employment: what exactly is it?
We talk about secondary self-employment when you carry out an independent activity in addition to a salaried job, civil servant position, or pre-pension/pension situation. You contribute to social security as an independent but on a reduced basis.
Important: the "secondary" status changes nothing about your VAT obligations. You are treated like any other independent with respect to VAT.
Do you need to register for VAT?
It depends on your annual global turnover (all independent activities combined):
- Turnover < 25,000 euros: you can opt for the VAT exemption scheme (no VAT invoiced, no VAT recovered)
- Turnover >= 25,000 euros: mandatory registration under the normal scheme
- Certain activities require registration from the first euro (hospitality, real estate, etc.)
Common pitfall: the 25,000 euro threshold is calculated on the calendar year. If you exceed it during the year, you must switch to the normal scheme from the following month. Many secondary self-employed workers exceed it without realizing it.
Does your salary count towards the 25,000 euros?
No. Only the turnover from your independent activity counts. Your salary as an employee is excluded from the VAT calculation.
How to invoice as an secondary self-employment?
Under VAT exemption (Turnover < 25,000 euros)
- Mandatory mention: "Regime de la franchise de la taxe — Vrijstellingsregeling van de belasting"
- No VAT indicated
- Your business number (not a VAT number)
Under normal VAT scheme (Turnover >= 25,000 euros)
- Your VAT number (BE + business number)
- Applicable VAT rate (6%, 12% or 21% depending on your activity)
- Quarterly VAT declarations (or monthly if turnover > 2.5M euros)
- Annual client listing
Taxation of secondary self-employed worker income
Your independent income is added to your salary and taxed at your marginal tax rate. In Belgium, this can quickly reach 50% + social contributions. Hence the benefit of structuring properly:
- Deduct as many real professional expenses as possible
- Assess whether setting up a company would be more advantageous from a certain income level
Mistakes to avoid
- Exceeding 25,000 euros without knowing and continuing to invoice without VAT — risk of tax adjustment
- Not declaring your activity to the Business Crossroads Bank — legal obligation even for a secondary activity
- Confusing VAT exemption with tax exemption — exemption does not exempt you from declaring your income
Ledgerly for secondary self-employed workers
Ledgerly displays your cumulative turnover in real time on your dashboard. You know at all times if you are approaching the 25,000 euro threshold, and you are automatically notified when you exceed it.